Be sure to coat the doughnuts with the cinnamon and sugar mixture while they are still warm.
1. In medium-size bowl, whisk together the 3-1/2 cups flour, baking powder, salt, cinnamon and nutmeg. Set aside.
2. In large bowl, lightly beat yolks on medium speed. Gradually add granulated sugar, beating until pale and slightly thickened, about 3 minutes. Mix in butter. Add flour mixture alternately with milk, stirring with wooden spoon until combined.
3. On well-floured surface, with floured rolling pin, roll dough into 1/2-inch thickness. Let rest for 15 minutes.
4. Meanwhile, heat oil to 365 F (a cube of bread will be browned and crisp after 1 minute) in a heavy-duty saucepan over medium-high heat.
5. Cut into doughnuts with 2-3/4-inch round cutter along with 3/4-inch round cutter for the centers. Gather scraps and re-roll if needed.Coating:
6. Place cinnamon-sugar in a small bowl. Carefully slip the doughnuts and doughnut holes, 3 or 4 at a time, into the hot oil. Fry until golden, turning once, about 2 to 3 minutes total per batch. Drain doughnuts on paper towel, then transfer still-warm doughnuts to cinnamon-sugar coating and roll to cover completely. Serve warm.